Arcos Dorados Reports Strong Q4 and Full Year 2023 Results

TL;DR

Arcos Dorados crushed Q4 & full-year 2023 earnings, showing strong performance.

AI Summary

Arcos Dorados Holdings Inc. reported strong financial results for the fourth quarter and full year 2023 on March 13, 2024. The company, a major McDonald's franchisee, highlighted its performance in its latest 6-K filing. Specific financial figures for the quarter and full year were detailed in the accompanying press release.

Why It Matters

This filing provides investors with an update on the financial health and performance of Arcos Dorados, a significant player in the Latin American quick-service restaurant market.

Risk Assessment

Risk Level: low — The filing is a routine financial results report and does not contain any new material adverse information.

Key Players & Entities

• Arcos Dorados Holdings Inc. (company) — Registrant
• Juan David Bastidas (person) — Chief Legal Counsel
• March 13, 2024 (date) — Filing and Press Release Date

FAQ

Key Financial Figures

• $1.2 billion — RESULTS • Total revenues reached $1.2 billion in the fourth quarter and $4.3 billion
• $4.3 billion — $1.2 billion in the fourth quarter and $4.3 billion for the full year 2023, the Company&rsq
• $132.6 million — n the fourth quarter and full year were $132.6 million and $472.3 million, respectively, also
• $472.3 m — r and full year were $132.6 million and $472.3 million, respectively, also the Company&r
• $55.8 m — l; Net Income in the fourth quarter was $55.8 million, or $0.26 per share, and $181.3 m
• $0.26 — he fourth quarter was $55.8 million, or $0.26 per share, and $181.3 million for the f
• $181.3 million — $55.8 million, or $0.26 per share, and $181.3 million for the full year, or $0.86 per share,
• $0.86 — nd $181.3 million for the full year, or $0.86 per share, the Company’s highest
• $0.24 — f Directors declared a cash dividend of $0.24 per share for 2024 Montevideo, Urugua
• $1.2 b — • Consolidated revenues totaled $1.2 billion, rising 15.4% in US dollars versu
• $132.6 m — solidated Adjusted EBITDA¹ reached $132.6 million, the Company’s highest quar
• $4.3 b — • Consolidated revenues totaled $4.3 billion, rising 19.7% in US dollars versu
• $472.3 million — l; Consolidated Adjusted EBITDA reached $472.3 million in 2023, up 22.2% in US dollars versus
• $181.3 m — ve royalty rate. • Net income of $181.3 million, or $0.86 per share, was the high
• $0.67 — mpany’s history and compared with $0.67 per share for the full year 2022. &bu

Filing Documents

• dp208253_6k.htm (6-K) — 316KB
• item1-cover.jpg (GRAPHIC) — 113KB
• item1-sidebar.jpg (GRAPHIC) — 1KB
• item1-nyse.jpg (GRAPHIC) — 2KB
• item1-mcd.jpg (GRAPHIC) — 2KB
• item1-conres.jpg (GRAPHIC) — 92KB
• item1-p06.jpg (GRAPHIC) — 7KB
• item1-divres.jpg (GRAPHIC) — 70KB
• item1-recdev.jpg (GRAPHIC) — 92KB
• item1-socmed.jpg (GRAPHIC) — 2KB
• item1-ty.jpg (GRAPHIC) — 100KB
• 0000950103-24-003753.txt ( ) — 981KB

From the Filing

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 6-K REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934 For the month of March, 2024 Commission File Number: 001-35129 Arcos Dorados Holdings Inc. (Exact name of registrant as specified in its charter) Río Negro 1338, First Floor, 11100 Montevideo, Uruguay (Address of principal executive office) Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F: Form 20-F X Form 40-F ARCOS DORADOS HOLDINGS INC. TABLE OF CONTENTS ITEM 1. Press Release dated March 13, 2024 titled “Arcos Dorados Reports Strong Fourth Quarter and Full Year 2023 Financial Results” SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Arcos Dorados Holdings Inc. By: /s/ Juan David Bastidas Name: Juan David Bastidas Title: Chief Legal Counsel Date: March 13, 2024 Item 1 ARCOS DORADOS REPORTS STRONG FOURTH QUARTER AND FULL YEAR 2023 FINANCIAL RESULTS • Total revenues reached $1.2 billion in the fourth quarter and $4.3 billion for the full year 2023, the Company’s strongest US dollar results for both periods • Systemwide comparable sales¹ grew 32.4% in the fourth quarter and 34.6% in the full year 2023, up 1.1x and 1.3x blended inflation, respectively • Digital channel sales (Mobile App, Delivery and Self-order Kiosks) contributed 53% of the fourth quarter’s systemwide sales, including 21% identified sales • Consolidated Adjusted EBITDA¹ in the fourth quarter and full year were $132.6 million and $472.3 million, respectively, also the Company’s strongest US dollar results for each period • Net Income in the fourth quarter was $55.8 million, or $0.26 per share, and $181.3 million for the full year, or $0.86 per share, the Company’s highest earnings per share for a full year • Net Debt to Adjusted EBITDA ratio remained at a healthy 1.0x at year-end 2023 • The Board of Directors declared a cash dividend of $0.24 per share for 2024 Montevideo, Uruguay, March 13, 2024 – Arcos Dorados Holdings, Inc. (NYSE: ARCO) (“Arcos Dorados” or the “Company”), Latin America’s largest restaurant chain and the world’s largest independent McDonald’s franchisee, today reported unaudited results for the three months, and audited results for the twelve months, ended December 31, 2023. Fourth Quarter 2023 Highlights • Consolidated revenues totaled $1.2 billion, rising 15.4% in US dollars versus the prior year period. • Systemwide comparable sales¹ increased 32.4%, with higher guest traffic and average check driving at or above-inflation growth in all divisions. • Consolidated Adjusted EBITDA¹ reached $132.6 million, the Company’s highest quarterly result, rising 16.3% in US dollars. • Consolidated Adjusted EBITDA margin was 11.3%, rising 10 basis points versus the fourth quarter of 2022. • Net income was $ 55.8 million in the quarter, or $0.26 per share. • The Company opened 36 restaurants in the quarter, including 31 free-standing locations and 18 new restaurants in Brazil. 1 For definitions, please refer to pages 16 and 17 of this document. 2 Full Year 2023 Highlights • Consolidated revenues totaled $4.3 billion, rising 19.7% in US dollars versus 2022. • Systemwide comparable sales¹ increased 34.6%, with above-inflation growth throughout the year and across all divisions, rising 1.3x the period’s blended inflation rate. • Consolidated Adjusted EBITDA reached $472.3 million in 2023, up 22.2% in US dollars versus the prior year, establishing a new high for a full year. • Consolidated Adjusted EBITDA margin rose to 10.9% for the year, improving 20 basis points versus the prior year, or 60 basis points, excluding the increase in the effective royalty rate. • Net income of $181.3 million, or $0.86 per share, was the highest earnings per share in the Company’s history and compared with $0.67 per share for the full year 2022. • Restaurant openings reached 81 new units in 2023, including 72 free-standing locations and 50 openings in Brazil. Message from Marcelo Rabach, Chief Executive Officer We are very pleased to report that we had a solid finish to a very strong year in 2023. Our Three D’s Strategy of Digital, Delivery and Drive-thru continues to evolve while leveraging the industry’s largest free-standing restaurant portfolio. The penetration of Digital channels is expanding throughout our footprint thanks to (i) a mobile app that works as an e-commerce platform to offer incentives and convenienc

View Full Filing

View this 6-K filing on SEC EDGAR